U.S. and China intensify the tariff war: an escalation with global impact

Trade tensions between the United States and China reached a new peak this week, with both economic powers hardening their stances in a tariff war that threatens to further destabilize the global economy.

In the last few hours, U.S. President Donald Trump announced the imposition of additional 50% tariffs on Chinese goods, raising the total to 104% in some cases, in response to Beijing’s recent retaliatory measures. China, for its part, has not backed down and has vowed to “fight to the end” if Washington persists in its economic pressure strategy, according to official statements from the Chinese Ministry of Commerce.

The conflict, which began brewing during Trump’s first term in 2018, took a dramatic turn in 2025 with the introduction of new U.S. tariffs. On April 7, Trump accused China of “manipulating its currency” to offset the impact of the tariffs and warned that he would no longer tolerate “trade abuses”.

In a message posted on his Truth Social platform, the president wrote: “If China does not withdraw its 34% increase before April 8, we will impose an additional 50% tariff starting April 9. Talks are over!” Hours later, the U.S. government confirmed the implementation of these measures, which affect all Chinese imports, valued at over $440 billion annually.

China responded swiftly. Last Friday, Beijing had already announced reciprocal 34% tariffs on all U.S. goods starting April 10, a measure that builds on previous restrictions and increases pressure on key sectors such as agriculture, energy, and technology. And on Wednesday, the Asian giant raised tariffs on U.S. exports to 84%. Additionally, the Chinese government imposed strict export controls on rare earths, materials essential for manufacturing semiconductors and batteries, in what analysts interpret as a strategic counterattack.

“The actions of the United States are an example of unilateral bullying that does not conform to international trade norms,” declared a spokesperson for the Chinese Ministry of Finance, emphasizing that Beijing “will safeguard its legitimate interests”.

The escalation shows no signs of slowing. On Monday, April 8, Trump threatened to cancel any negotiations with China following the intensification of retaliatory measures, while Chinese Foreign Ministry spokesperson Lin Jian countered: “Pressure and threats don’t work with us. China will fight to the end if necessary”.

Alarms in Financial Markets

This exchange of statements has triggered alarm bells in global markets, with significant drops in major stock exchanges. Wall Street closed Tuesday with losses of 1.5%, while the Euro Stoxx 50 and Asian indices recorded declines between 2% and 4%, reflecting fears of a global recession.

The origins of this tariff war trace back to Trump’s obsession with reducing the U.S. trade deficit with China, which reached $270 billion in 2024 according to official U.S. figures. Since his return to the White House in January 2025, the president has implemented a series of progressive tariffs, starting with 10% in February and another 10% in March, before the recent 34% salvo that took effect this week. Trump justifies these measures as a way to revitalize U.S. manufacturing and protect jobs, but critics warn that American consumers and businesses are bearing the cost.

On the international stage, the tariff war has sparked ripple effects. Countries like Japan, South Korea, and Canada have begun coordinating joint responses with China, while the European Union is evaluating measures to mitigate the impact on its exports. Experts agree that the confrontation between Washington and Beijing goes beyond economics, reflecting a struggle for global supremacy. “This isn’t just about tariffs; it’s a battle for technological and geopolitical dominance,” says Ryan Young of the Competitive Enterprise Institute.

Meanwhile, the World Trade Organization (WTO) estimates that global trade could shrink by 1% this year if the escalation continues unchecked. With both giants standing firm, the world watches with uncertainty as this conflict reshapes the international economic order.